TMI Blog2010 (6) TMI 230X X X X Extracts X X X X X X X X Extracts X X X X ..... t Rules, 2004, the appellants shall be al lowed to take credit of the Service Tax paid by them on the input services, which may be utilized by them for payment of any duty of excise on any final product or any Service Tax on any output services. Matter need verification of invoices showing purpose of use of input services. No need for segregation of credit amount used in manufacturing and input services. - E/232-235/2009 - A/297-300/2010-WZB/MUM/C-IV/SMB - Dated:- 16-6-2010 - Shri Ashok Jindal, Member (J) REPRESENTED BY: S/Shri Manoj Sanklecha and Jesse Carnelious, Advocates, for the Appellant. Shri S.S. Katiyar, SDR, for the Respondent. [Order]. - These appeals filed by the appellants against the Commissioner's order wherei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovider of taxable services shall be allowed to take credit of Service Tax leviable under Section 66 of the Finance Act." He further submitted that as per sub-rule (4) of Rule 3 of Cenvat Credit Rules, 2004, CENVAT credit may be utilized for payment of - (a) any duty of excise on any final product or (b)…………. (c)…………. (d)…………. (e) service tax on any output service. Hence, there is no rule providing for segregation of the CENVAT credit availed on the input services used by the appellant in their manufacturing activity or output services. He further submitted that in the impugned order, CENVAT credit was denied as per Rule 9(5), which is not applicable to the facts of these cases as Rule 9(5) deals with inputs and not the input ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that was the only reason for denial of the CENVAT credit. Hence, the impugned order is to be sustained. 5. Heard both sides. 6. On careful examination of the submissions made by both sides, I find that as per Rule 3 of the Cenvat Credit Rules, 2004, the appellants shall be al lowed to take credit of the Service Tax paid by them on the input services, which may be utilized by them for payment of any duty of excise on any final product or any Service Tax on any output services. But Rule 9(6) of Cenvat Credit Rules, 2004 deals with situation like that, which is reproduced herein as under :- "The manufacturer of final products or the provider of output service shall maintain proper records for the receipt, disposal, consumption and inve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were availed by the appellants, which has not been mentioned by the lower authorities. Hence, the matter needs the verification of in voices showing the purpose of use of the input service by the appellant. There is no need of segregation of the amount for use in manufacturing and outward services. The adjudicating authority shall allow the credit after satisfying the purpose of use of input service without segregating the amount. Accordingly, the matter is remanded back to the original adjudicating authority for the limited purpose to verify the purpose of use of input service. The appellants are also directed to give invoice-wise explanation with regard to the purpose of use of input service within two months from receipt of this order. N ..... X X X X Extracts X X X X X X X X Extracts X X X X
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